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Volatility turns overseas investors off Shanghai-HK bourse link

Rollercoaster ride on Shanghai market makes it hard for buyers to know when to jump on or off

Wed, Dec 24, 2014 - 5:50 AM

The Shanghai Composite Index's surge was more than double the 9.1 per cent advance for the Hang Seng China Enterprises Index in Hong Kong, where institutional investors dominate. That pushed the premium on dual-listed shares in Shanghai to 25 per cent on Monday.

PHOTO: REUTERS

Hong Kong

SINCE the day China loosened access to its stocks in November, the Shanghai Composite Index has soared 26 per cent as the rest of the world's markets stood still. Rather than attract overseas buyers, it's repelling them.